Effective also from 1st October 2015, all licensed moneylenders are only allowed to charge for the following:
- For each month of late repayment, the fee must not exceed $60
- When the loan is granted, a fee must not exceed 10% of the principal loan amount
- For recovery of the loan, the moneylender can only claim the legal costs ordered by the court
Remember, the total charges on any loan must not exceed your total principal loan amount. For example, if you have a total principal amount of $10,000, the lender can only charge the interest (up to 4% per month only), late interest rate (up to 4% per month only), 10% administrative fee and $60 fee for late repayment for the month. The total fees must not exceed $10,000.